frista _ ppt chapter 13 managing brands over time
TRANSCRIPT
Brand management requires a long-term view of marketing decisions as– Any action of its marketing program has the
potential to change consumer knowledge about the brand
– Consumer brand knowledge from current (or change in the current) marketing activity has an indirect effect on the success of future marketing activities
MANAGING BRANDS OVER TIME
STEPS FOR MANAGING BRANDS
OVER TIME1. Reinforcing brands
2. Revitalizing brands
3. Adjusting brand portfolio
Reinforcing
Brands
• Brand equity is reinforced by marketing actions that consistently convey the MEANING of the brand to consumers in terms of BRAND AWARENESS and BRAND IMAGE.
• Reinforced marketing actions, along with product development, branding strategies etc. also help in keeping the brand meaning in terms of products, benefits and needs as well as in terms of product differentiation intact.
Reinforcing Brands
ReinforcingBrands
MaintainingBrand Consistency
Protecting Sources of Brand Equity
Maintain brand consistency
the amount and nature of support necessary to maintain strength and favorability of brand associations. – Invest in R&D (to avoid
obsolescence)– Marketing and communication
programs (to not be out-of-date, irrelevant, forgotten)
– Adequate budgets to do the above
Maintain brand consistency
Market Leader & Failures Maintaining customers loyalty through associations Adequate marketing support to level with market
expectancy Clever pricing strategy
Market leader’s complacency and greed results in lostLoyalty because of : marketing support shrinking unrealistic price hikes
VS
SINCE 199240% market share
SINCE 197025% market share
Campina Loss of market share caused by drop in ad and marketing support. while Walls continuously
innovate products & marketing support (30 billion /year to promote product)
Maintain brand consistency
Consistency & ChangeConsistency - Maintain desired knowledge structure Change - Tactical shifts needed to maintain strategic thrust and direction Price can move up or downProduct features can be added and droppedAd campaigns can have different – creative slogansExtensions can be introduced or withdrawn
No need to deviate from a positioning unless there is a change in consumers, competition, or company, that makes it less powerful.
Many brands have kept a key creative element in their marketing communication programs over the years and, as a result, have effectively created some “advertising equity”
Yamaha make changes to advertising slogans. previous slogan was “one heart", then changed to “semakin di depan“ and “yang lain makin ketinggalan” because they want to show yamaha innovation (aspect acceleration).
Protecting Sources of Brand Equity
Key sources of brand value should be enduring, and guarded and nurtured
Value of sources get eroded -• when the brand is expanding to include new
associations (product and non-product related) • Over time there is change
No need to deviate from a positioning unless there is a change in consumers, competition, or company, that makes it less powerful.
VSThere is similarity brand name between ExtraJOSS and EnerJOS that harm Extrajoss
Revitalizing
Brands
Revitalizing Brands
• Reversing a brand’s fortunes involves –Revitalization and Reinvention
– Recapturing lost sources of brand equity
– Identifying and establishing new sources of brand equity
Revitalization efforts – is possible for brands that have clear, relevant values that have been left dormant for a long time
• Revitalization strategy - tap into existing sources of brand equity– product strategy– pricing strategy– channel strategy– communication strategy
Revitalizing Brands
RevitalizingBrands
Expanding Brand Awareness
Improving Brand Image
Expanding Brand Awareness
• Expand Breadth – Increased Usage– Quantity (how much consumers use the brand)• Difficult to change• Function of particular beliefs• Exception – Impulse Consumption (availability)
– Frequency (how often consumers use the brands?• New opportunities• New Ways
Improving Brand Image
• Changes in Brand Awareness not sufficient
• A new Marketing Program• Old positive associations to
bolstered• New positive associations to
be created• Negative associations to be
neutralized
Repositioning
Changing Brand Elements
– Establishing more compelling points of difference– Remind consumers of virtues of brands that have been
taken for granted– Nostalgia and heritage– Establish a point of parity on key image dimension– Negative product-related associations due to changes in
consumer tastes
Repositioning
Fatigon were originally positioned as a multivitamin, but did not succeed because it was quite a lot of
multivitamins on the market. Then it became successful after repositioning as a busting
tired multivitamin . So differentiation Fatigon well received by consumers.
– Modification of Brand name– Other Brand Elements – Packaging, logos etc.– Moderate and evolutionary in nature– Preserve salient aspects of Brand elements
mcdonald's Indonesia change its one of brand one elements , that is slogan. Previously, slogan was "Mana Lagi selain di McD” . but in 2003, the slogan was changed to “I’m Lovin’ it”
Changing Brand Elements
Adjusting
BrandsPortfol
io
Adjustments to the Brand Portfolio
Migration Strategy
Retiring Brands
Brand Migration Strategy is designed and implemented to accommodate changes in brands and consumers (particularly important in rapidly changing technology product brands)
– Migrating customers within the portfolio -• To switch as needs and desires change - Brands
should be organized logically in the mind – Alpha numeric system for cars for consumers to
trade up
Brand Migration Strategy
Retiring brands - Obsoleting existing products
Decision to Retire a brand depends on a number of factors (existing and latent equity of a brand)• If BE is damaged• If BE has dried up
beyond repair
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